(TRW) - has met or exceeded earnings estimates for each of the past nine quarters

TRW Automotive Holdings Corp. (TRW) has met or exceeded earnings estimates for each of the past nine quarters. Four analysts have raised their numbers for this year, while two have done so for next year. Over the past 90 days, this year's estimates have increased 23% to $2.13 per share, while next year's estimates have risen 12.9% to $2.28 per share. The stock is attractively valued 11.8x next year's estimates, in-line with the company's long-term growth rate of 11.6%. Full Analysis TRW Automotive Holdings Corp. provides advanced technology products and services for the automotive markets. TRW Automotive is among the world's ten largest suppliers of automotive systems, modules and components to global automotive manufacturers. TRW is a leading supplier to the OEM producers, with 85% of its revenue being derived from OEMs and 7% tied to the aftermarket. Europe accounts for 55% of the company's sales, North America for 37% and 8% from other areas. Nearly 80% of sales are targeted towards passenger safety. The company is one of the largest suppliers of automotive chassis and occupant safety products (58% of sales). The company holds a leading position in automotive and commercial steering systems, foundation brake components and systems, seat belt systems, engine valves and valve train systems. The second leading division is Occupant Safety and Systems (29% of sales). This division contains air bags, seat belts, crash sensors, and other safety and security electronics. TRW Automotive is a global leader in the development and supply of active and passive safety technologies. Increasing focus by the government and consumers on safety and fuel efficiency is likely to propel demand for active and passive safety products. The National Highway Safety Traffic Administration is making it mandatory for vehicles to incorporate a direct tire pressure monitoring system, capable of detecting when one or more tires are significantly under-inflated. Under the present proposal, 100% compliance is expected by September 2007. Regulatory measures are likely to be a boon for TRW's vehicle stability control systems (VSC), curtain air bags, occupant sensing systems, electrically assisted power steering systems and tire pressure monitoring systems. TRW has efficiently managed to mitigate the impact of higher raw material costs through cost cutting and efficient supply chain management. Overall cost cutting amounts to nearly $400 million annually. The company is shifting production to low wage areas, improving raw material purchases, and implementing Six Sigma. The company has met or exceeded earnings estimates for each of the past nine quarters. Four analysts have raised their numbers for this year, while two have done so for next year. Over the past 90 days, this year's estimates have increased 23% to $2.13 per share, while next year's estimates have risen 12.9% to $2.28 per share. The stock is attractively valued 11.8x next year's estimates, in-line with the company's long-term growth rate of 11.6%. Note: The Zacks Rank is a very sensitive indicator that can change frequently for an individual stock. The ranks are updated every Monday morning on Zacks.com. As such, it is prudent to check the site for the latest Zacks Rank on the stocks highlighted in this section. Simply click the link for the stock or enter the symbol in the ticker entry box in the upper left hand corner of the web site. Content Courtesy: Zacks Investment Research #1 Ranked Stocks Highlight Archive To truly take advantage of the Zacks Rank, you need to first understand how it works. That is why we created the free special report: Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions. Blog Home